Alphabet gets penalized
Wall Street closes with losses
2/9/2023, 11:12 p.m
The US stock exchanges continue to be weighed down by interest rate and economic concerns. After a brief period of recovery, investors lost heart again during the course of the day. Investors are staying away from Alphabet over doubts about the reliability of Google’s AI. On the other hand, papers from the gaming industry are in demand.
Wall Street closed in the red on Thursday, weighed down by falls in Alphabet’s share price. The Dow Jones Index the defaults went 0.7 percent lower to 33,699 points from trading. The tech-heavy one Nasdaq gave way one percent to 11,789 points. The broad one S&P 500 lost 0.9 percent to 4081 points.
Dealers justified the price reductions, among other things, with rising yields on the bond market. Demand remained weak at an auction of 30-year bonds. Before the stock markets turned negative, numbers on the weekly US jobless claims had lifted sentiment in the first hours of trading. The higher-than-expected reading briefly reassured investors after a robust US jobs report sparked renewed interest rate fears last week.
Strong company balance sheets and forecasts prevented major price losses. More than half of the 500 companies listed in the S&P index have now presented quarterly figures. Of those, 69 percent beat analyst expectations, according to Refinitiv data. That is around three percent more than in an average quarter.
The shares of the Google parent fell in terms of individual values alphabet by 4.4 percent. The background is that the Google AI “Bard” made a mistake in an advertising video. The battle of artificial intelligence is mainly fought between Microsoft and Google. Optimistic forecasts from wynn and MGM Resorts drove the gambling industry on the other hand. Casino operator stocks rose 4.8 and 6.4 percent respectively. Wynn said Macau saw a renewed surge in visitor numbers during the Chinese New Year celebrations. This means that the company is well positioned for the next growth phase.
Meanwhile, excluding the autopilot as the cause of a fatal accident spurred on Tesla shares by almost three percent. An evaluation of the data showed that “the autopilot mode was never used while the car was in the driver’s possession,” according to the NTSB. Two people died in the accident in April 2021.
Conversely, a loss above market expectations and massive job cuts at Canadian marijuana producer Canopy Growth pushed US cannabis stocks lower. Lost like that curaleaf and Tilray Brand for example, five and 5.6 percent.